Grubhub is eating too much food delivery money during the coronavirus pandemic, a New York City restaurant and bar owners’ group said Thursday.
Restaurants and bars that have stayed open in the time of social distancing have converted their business to takeout only — a shift that has meant a steep decline in income.
But Grubhub is taking up to 30% of the revenue from food orders, said Jeffrey Garcia, president of the NYS Latino Restaurant, Bar & Lounge Association. Garcia said his group’s revenue-hungry members as “distraught” at Grubhub’s fees.
“For Grubhub to take advantage of this reliance during the midst of a global health pandemic is abhorrent and there must be actions made to cap these fees at 10% of total orders,” Garcia said.
Grubhub spokesman John Collins shot back, saying delivery fees are optional and that restaurants can choose to use their own delivery drivers.
“This arbitrary cap is exactly the wrong step at exactly the wrong time,” he said. “Not only could it lower pay for struggling delivery workers, it would disrupt an essential supply chain of meals to New York’s seniors and families at their most vulnerable time.”
Last month, Grubhub announced that it was temporarily suspending the collection of up to $100 million in commission payments from restaurants hit hard by economic fallout from COVID-19.
Despite that move, many restaurants in the city are advising customers to phone in their orders directly so they don’t get hit with fees from Grubhub and other apps.
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